A growing and stable economics, a relatively cheap but competent workforce, tough but transparent and fair conditions for investors. These are far from all the reasons why today is the best time to open a biz in Spain. The economy of the state is interested in attracting foreign investments, because the current legislation does not put non-residents in a less favorable position than locals: the terms for all are equal.
Features of the business environment in Spain
Despite the status of an industrial country, as in any other European state, the basis of the Spanish economy is small-sized businesses in Spain, Local legislation defines the business structure of Spain as a country of this type of enterprises, emphasizing their central place in the issues of increasing national wealth, creating workers places and supporting employment, as well as flexibility in case of economic turmoil.
The historical predominance of the rural population and the small number of large industrial enterprises determined a certain, so to speak, Spanish national tradition, such a “folk economic style”. Small and medium-sized enterprises (SMEs) are the foundation of entrepreneurship and the production structure in Spain as a whole, which is demonstrably confirmed by statistics:
- 99.8% of Spanish enterprises belong to SMEs;
- 95.8% of them are organizations that employ up to 9 people;
- 97% of SMEs have a profit of less than 2 million euros;
- only 0.1% of Spanish companies have a turnover exceeding 50 million euros;
- 66% of jobs and 65% of Spanish GDP are accounted for by small and medium-sized enterprises.
According to the uniform criteria that have been in force in the EU since 2005, the following are created in Spain:
- micro-enterprises: 0-10 employees, with a turnover of up to 5 million euros;
- small enterprises: 10-49 employees, with a turnover of up to 10 million euros;
- medium-sized enterprises: 50-249 employees, with a turnover of up to 50 million euros.
About 25% of all these organizations work in trade, the second most significant in this context is the construction of businesses in Spain for sale – it accounts for about 12.7% of the total number of all small enterprises.
About 9% of companies belong to hotel complexes.
How to open a company in Spain
Opening a company is associated with certain features and requirements in non-European countries. But let’s dispel the myth right away:
- in order to open your own company, you do not need to obtain a visa or GNP and be a resident of Spain:
- if all the work will be performed by hired personnel or Spanish partners, the founder does not need to obtain any civil status at all. If the conduct of affairs will be carried out independently – at least a biz can’t be dispensed with.
To obtain a company in country, a non-citizen must:
- not be a citizen of the EU;
- to be legally in Spanish territory;
- not have a criminal record in country and the country of accommodation during the last 5 years;
- not have a ban on entry to Spain and not be considered as a person undesirable for admission to Spain;
- comply with the requirements of legislation for a specific type of commercial activity;
- possess the necessary qualifications and experience for the implementation of a specific business plan (if it is a rental business – a realtor’s qualification, if it is a construction business – construction education);
- prove the sufficiency of the planned investments for the implementation of the opening business plan and the necessary jobs;
- to prove the sources of financing and the availability of funds for own maintenance and maintenance of family members.
Terms of company formation of business in Spain for sale
As stated by the World Bank’s Doing Business in Spain report, the country is not among the countries with the possibility of quick business registration. According to the World Bank, the kingdom ranks 85th in the world according to this criterion: due to the many bureaucratic procedures, opening a company in Spain takes an average of about 13 days, compared to 8 days in average spent by entrepreneurs in other OECD countries. However, such data are derived only on the basis of SB calculations, and according to sociologists, entrepreneurs spend an average of 47 days on creating a company.
Costs of businesses for sale in Spain
On the example of an LLC, it will be:
- obtaining a certificate of registration of the name in the Center for Central Development – about 40 euros;
- formation of authorized capital – minimum 3 thousand euros;
- development of installation documentation – 100-150 euros;
- notary services – 150-300 euros depending on the region;
- registration in the provincial trade register – 150-300 euros;
- other administrative costs – up to 200 euros.
How to buy business in Spain
Considering the difficulties of registering a business in the kingdom, foreign capital often prefers to buy an already existing Spanish enterprise. In this case, we are talking about more serious amounts. But buying a ready-made business has its advantages.
In short, it is the presence of a ready-made target audience, established corporate mechanisms, equipment, advertising, probably stable income. Among the most popular destinations are the hotel and restaurant business, beauty salons and shopping complexes, coffee shops and gas stations.
It is interesting that a foreigner will not need a special resident status to buy a company. Moreover, after the purchase of the enterprise, the investor can apply for a business visa or even a GNP.
Conclusion
Summarizing all that has been said, we can highlight several obvious pros and cons of setting up a business in Spain. Among advantages:
- open EU market;
- cheap labor force, including from among the natives of the CIS countries;
- the presence of a residence permit, which opens the freedom of movement within Schengen;
- protection of foreign investments and the growing economy of the country.
And disadvantages:
- expensiveness, bureaucracy and duration of enterprise registration;
- difficulties in understanding local legislation;
- the need to issue a visa and GNP for independent business management;
- the need for large investments
